The WWE went into Thursday’s meeting to display their quarter-report, and the results weren’t what they previously hoped for. Vince McMahon and the rest of the WWE officials are still striving for the $1 million subscriber-mark for the WWE Network. As soon as the numbers were revealed that the WWE Network only had 731,000 subscribers, McMahon needed to act in desperation.
So, in classic-McMahon fashion, he took to YouTube to update the WWE Universe on the new developments with the WWE Network. Anyone can get the WWE Network now for $9.99 with no six-month commitment. Along with that, any new subscriber will receive the Network absolutely free for the month of November. That means Survivor Series will not even charge a cent.
McMahon did the proper thing by reacting to the harsh news. In today’s society, it is very hard to start things even with the money to do so. WWE’s new network is still in its infancy. There needs to be time spent and it may take a year and a half to gather one-million fans. Not many people are patient in the world, especially the ones in the financial and media industries. The New York Post is now claiming that the WWE is getting ready to crumble after their failure to reach their goal of WWE Network subscribers.
Subscriptions to the $9.99 per month service totaled 731,000 subscriptions at the end of September—a net gain of just 31,000 in the three-month period. WWE recorded a net gain of just 3,000 subscribers in the United States, with the rest coming from the overseas expansion.
The Post considers it particularly alarming that of the 700,000 Network subscribers WWE had going into the quarter, 255,000 dropped their subscription. This a churn rate of 36 percent.
“At least they’re adding more than they’re losing,” said equity analyst Robert Routh.
The above portion was a culmination of the article the New York Post published. They don’t even realize that the WWE is a different company than most in the world. Professional wrestling isn’t as popular as it once was. That’s a fact and the ratings prove its decline in popularity.
Not only does the New York Post not understand the wrestling industry, but also Wall Street opened up about their opinions about the McMahon family and its future endeavors. Emmanuel Lemelson, founder of Lemelson Capital, firmly believes that McMahon will sell the WWE. Lemelson is a very credible mind in the financial industry, but professional wrestling is an anomaly.
Nobody will ever be able to replicate the worth or financial structure of professional wrestling. There are business theories that can be applied, but the WWE is an animal far different from that of a normal corporation. Vince McMahon will never sell the WWE. That’s a fact.
[Image via philly.com]